Chelsea planning to raise £15m

SHARES in deeply-indebted Chelsea football club soared on Wednesday after chairman Ken Bates disclosed plans for a major fundraising. Mystery backers are preparing to pump in up to £10m in return for a stake of around 15%.

Bates owns 29% and apparently wants to make a dent in the club's debts of nearly £100m. He said he is preparing to issue new shares at a 'significant premium' to the previous price of 18 1/2p.

The shares jumped 4 1/2p to 23p, valuing the club at almost £40m. They once topped 104p before City funds took fright at footballers' rising wages.

Chelsea Village, parent company of the Premiership side, has the power to issue a further 30m shares which at 25p would raise £7.5m.

Seven Chelsea players are reported to be on £2m a year or more. An extraordinary general meeting on 29 January will clear the way for the cash injection.